B) Bank Accounts

Date: 2015-10-07; view: 449.

D) Explain the difference between current and deposit accounts.

When money in placed in ... bank it is said to be "deposited". The money may be put into ... account from which it can be drawn at any time, or into ... account which can only be drawn upon after certain notice has been given. In British banking, these types of accounts are known as current accounts and deposit accounts respectively. In ... USA, the corresponding terms are "demand deposits" and "time/or notice deposits".

A person uses a current account to provide ... safe way of keeping his money, and having it easily available when he wishes to spend it.

Payments are made from current accounts, and money is withdrawn from them by means of cheques (... very small interest is paid on these accounts).

A deposit account is used for saving money, and ... period of notice must be given before money can be withdrawn from a deposit account, especially when ... amount to be withdrawn is fairly big. A higher rate of interest is paid by the bank on money on deposit accounts compared with current ones. A cheque book is provided for the customer when he opens this account. The terms "cash deposits" and "savings deposits" are sometimes used to denote the deposits continually turned over in ... settlements of debts and those not held for current business, but as investments or savings.

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